Early Retirement for the Eurozone?

by Nouriel Roubini Nouriel Roubini is Chairman of Roubini Global Economics (www.roubini.com), Professor at New York University’s Stern School of Business, and co-author of Crisis Economics 15.08.2012


NEW YORK – Whether the eurozone is viable or not remains an open question. But what if a breakup can only be postponed, not avoided? If so, delaying the inevitable would merely make the endgame worse – much worse.

Germany increasingly recognizes that if the adjustment needed to restore growth, competitiveness, and debt sustainability in the eurozone’s periphery comes through austerity and internal devaluation rather than debt restructuring and exit (leading to the reintroduction of sharply depreciated national currencies), the cost will most likely be trillions of euros..........
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